Maryland Recording And Transfer Mortgage Tax – How Much Do You Have To Pay?

I talk to a lot of people who are buying real estate or refinancing their homes in Maryland and come across the Maryland Recording And Transfer Mortgage Tax.

The mortgage tax is substantial but varies according to what type of transaction you’re doing.

This article will shed light how much you have to pay the state of Maryland if you’re refinancing your existing mortgage or taking out a new mortgage for a home purchase.

On refinance transactions, you only pay the recording tax on the difference between the existing mortgage payoff amount and the new mortgage amount.

So, if your mortgage payoff is $100,000 and your new mortgage amount is $105,000, you’ll be taxed on the new money or the $5000 difference in this case.  This only applies to primary residences.

If you’re refinancing a second home or investment property, the tax is paid on the full mortgage amount.

If you’re buying a new home, you have to pay the Maryland state transfer tax.  Usually, the tax is split 50/50 between buyer and seller.

If the buyer is a first-time home buyer, the buyer’s half is waived.  Good news, indeed.

Now to the amount of the Maryland recording and transfer tax.

The recording and transfer tax varies according to the county the property is located in.

For example, if the property is located in Montgomery county, the recording tax is $6.90 per thousand and $10.00 per thousand if the loan amount is over $500,000.

The transfer tax, on the other hand, is 1.5% of the loan amount.  Wow.

So you see the Maryland transfer tax can get expensive.

Email me at if you’d like to know how much you’ll have to pay the state if your home is located in another county.





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